We’ll explore the factors that influence warehouse rental rates, the average cost of warehouses for rent in Singapore, and the advantages of short-term and long-term warehouse rentals. We’ll also provide an indicative price range and average.
Factors that Determine Warehouse Rental Rates
When it comes to renting a warehouse, there are several factors that can influence the rental rate. One of the most important factors is location. Warehouses located in areas with high demand for space will usually have higher rental rates than those in less popular locations.
The size and layout of the warehouse also play a role, with larger spaces and more efficient layouts commanding higher rates.
Other important considerations include amenities and services provided, such as loading docks or climate control, and accessibility to transportation networks.
The overall demand in the area can also affect the rental rate, with warehouses located in areas with high demand typically commanding higher rates than those in less popular locations. All these factors must be taken into consideration when deciding on a warehouse rental rate.
Location
When selecting a property for rent in Singapore, location is the most important factor to consider. Areas with high foot traffic and visibility command higher rental rates due to the higher demand and greater convenience.
Therefore, it is important to be thorough when doing a walk-through of each property and make a more accurate assessment of whether it meets your requirements. The JTC all-industrial price index increased by 0.1% q-o-q and the rental index nudged upwards by 0.7% q-o-q in 3Q2021, indicating an increase in rental rates as demand continues to rise.
Size and Layout of the Warehouse
The size and layout of the warehouse is an important factor when considering rental rates. The size of the warehouse will have an impact on the cost of rent, as larger warehouses typically cost more. Additionally, the layout of the warehouse should be taken into consideration.
If a warehouse has a good layout that allows for efficient use of space, it can also help to reduce costs. The number of shelves, storage racks, and other equipment should also be taken into consideration when determining the size and layout of warehouse space.
Amenities and Services Provided
When considering the amenities and services provided by a warehouse, it is important to look at what is included in the rental agreement. Different warehouses may provide different amenities based on their individual specifications. This could include parking, loading bays, security features, temperature control, lighting, and even fit-out provisions.
Businesses should check what are services provided before signing a lease agreement to ensure that they get all the features they need. It is also important to consider how accessible the warehouse is to transportation.
Warehouses that are close to major routes and public transport can be more beneficial for businesses that depend on a steady flow of goods and services.
Accessibility to Transportation
When looking for warehouse space in Singapore, accessibility to transportation is an important factor to consider. Warehouse storers should be aware that the closer their space is to major highways, the more convenient it will be for shipments to arrive and depart.
In addition, the proximity of the warehouse to transportation hubs such as airports and seaports will affect transportation costs. Good accessibility to transportation will also make it easier for customers to access the warehouse and pick up their orders. Thus, when looking for a warehouse space, consider how close it is to major highways and other transportation hubs.
Demand in the Area
Demand in the area is an important factor in determining the rental rate of a warehouse. As shown in the CBRE report, the occupancy rate for warehouses rose 0.4% q-o-q to 90.1% in 3Q2021, indicating that there is a high demand for warehouse space. Prime logistics space has been extremely tight and demand for single-user factory space is on the rise.
This is evidenced by the 25th percentile, median and 75th percentile monthly rents standing at S$1.20, S$1.50, and S$1.94 per sq ft per month respectively.
Therefore, if you are looking to rent a warehouse for storage space, it is important to factor in the demand in the area when setting the rental rate of your warehouse.
Average Cost of Warehouses for Rent in Singapore
The average cost of warehouses for rent in Singapore is dependent on multiple factors such as location, size and layout of the warehouse, amenities and services provided, accessibility to transportation and demand in the area.
For instance, warehouse rental rates in West Pioneer range from $1.65 to $1.85 per square foot; in Gul, they range from $1.80 to $2 per square foot; and in Penjuru, they range from $1.80 to $2 per square foot. Prices may vary depending on the features and services offered by the warehouse provider.
In addition, short-term and long-term warehouse rentals are available with different rates depending on the duration of the lease. Short-term rentals are usually more expensive than long-term rentals, but they offer more flexibility and freedom.
Configure Report – Indicative Price Range & Average
When it comes to warehouse rental rates in Singapore, there are a number of factors that need to be taken into consideration. The indicative price range for warehouse rentals can range from S$1.86 to S$4.46 psf pm, depending on the size, layout, amenities, and location of the warehouse.
According to Savills, the average monthly rent for prime warehouse and logistics properties rose at a faster pace by 2.1% YoY to S$1.46 per sq ft in Q4/2020.
Depending on the location, short-term and long-term rentals may have different rental rates. Short-term rentals are typically more expensive than long-term ones due to the convenience and flexibility that it offers.
On the other hand, long-term rentals are usually more cost efficient since businesses can benefit from discounted rates over a longer period of time.
Short-Term & Long-Term Warehouse Rentals
If you are looking for a warehouse for rent in Singapore, you can choose from either short-term or long-term rentals.
Short-term rentals are usually more affordable and provide flexibility to those who need storage space for a limited amount of time. On the other hand, long-term rentals offer a cost-effective solution for businesses that need to store items for extended periods of time.
Factors such as location, size and layout of the warehouse, amenities and services provided, accessibility to transportation, and demand in the area all affect the rental rate.
The average price range for warehouses in Singapore is between $2.80 to $3 per square foot. With a variety of options available, you can find the perfect storage space for your business needs.
Short-Term Warehouse Rentals
Short-term warehouse rentals are a great option for businesses that need to store inventory or equipment on a temporary basis. They are usually more affordable than long-term rentals and provide flexibility for companies with fluctuating demands. With short-term rentals, businesses can rent the exact amount of space they need and can increase or decrease their space requirements as needed.
Additionally, they can take advantage of amenities such as climate control, security, and loading docks that are often included in rental agreements. Many warehouses also offer online rental management that allows businesses to access their rental account from anywhere. Whether you’re looking for a temporary solution or just want some extra space, short-term warehouse rentals can be an affordable and convenient option for your business.
Advantages of Short-Term Warehouse Rentals
Short-term warehouse rentals offer a number of advantages. One of the main advantages is the flexibility that it provides. You are able to rent a space for only as long as you need it and can move out easily when your needs change or the lease expires. This allows businesses to be more agile and responsive to changes in their needs.
Additionally, short-term leases are often less expensive than long-term leases as they do not require long-term commitments or deposits, and they also do not incur administrative, labour, opportunity and other costs associated with traditional warehouse rentals. As short-term leases are often tailored to specific needs, you can get precisely what you need without having to pay for excess or unused space.
Furthermore, warehouses that are close to residential areas or have easy access to transportation may be more expensive than those located further away; however, with a short-term lease, you can find an affordable warehouse without sacrificing quality or convenience.
Long-Term Warehouse Rentals
Long-term warehouse rentals provide businesses with an affordable and flexible way to store their goods. These types of rentals allow businesses to commit to a longer term plan, which allows them to save on costs and plan ahead. When compared to short-term warehouse rentals, long-term rentals tend to be more cost effective as the rental fees are spread out over a longer period, reducing the overall cost.
Additionally, these rentals offer businesses more flexibility as they can expand or contract according to their needs. Furthermore, long-term warehouse rentals often come with additional services such as loading and unloading, maintenance, security and more. With all these benefits, it’s no wonder that more businesses are turning to long-term warehouse rentals for their storage needs.
Advantages of Long-Term Warehouse Rentals
Long-term warehouse rentals offer many advantages, such as greater control over the storage space, improved cost-efficiency, and the potential for long-term discounts. With a long-term lease, you can customize the warehouse to suit your needs and have more control over the layout of the space. You can also benefit from cost savings through lower rental rates and potential discounts.
Furthermore, with a long-term lease, you can enjoy greater security of tenure and stability as you are less likely to be forced to move due to sudden changes in rental rates. By choosing a long-term warehouse rental solution in Singapore, you can enjoy all these benefits while freeing up valuable space in your home or office.
Cost of Warehouses for Rent in Singapore 2023
The cost of renting a warehouse in Singapore in 2023 is expected to remain steady, with average rents ranging from S$179 to S$179 psf. Prices in Central, Ang Mo Kio, and Ang Mo Kio Industrial Park 2 are estimated to be approximately S$1.50 per square foot.
Other locations such as Joo Seng, Kallang, and Tai Seng have prices ranging from S$2.70 to S$4.50 per square foot, and Tampines at S$1.50 per square foot.
It is also predicted that rental growth for prime warehouse and logistics properties will rise by 5.0% annually for 2023.
In conclusion, there are several factors that determine warehouse rental rates in Singapore, such as location, size and layout of the warehouse, amenities and services offered, accessibility to transportation, and demand in the area. The average cost of warehouses for rent varies depending on these factors. Short-term rentals are a great option for businesses that need flexible storage solutions and long-term rentals are ideal for businesses that require more permanent storage. Ultimately, it is up to you to decide which option is best suited for your business needs.
